The Federal Reserve cut the federal funds rate three times this year, which means deposit account rates are also on the decline. It is more important than ever to ensure that you earn the highest possible rate on your savings, and a high yield savings account could be the answer.
These accounts pay more interest than the average savings account – as much as 4% APY and higher in some cases. Not sure where to find the best savings interest rates today? Read on to find out which banks have the best offers.
High yield savings accounts generally offer better interest rates than traditional savings accounts. However, rates vary widely across financial institutions. That's why it's important to shop around and compare rates before opening an account.
As of January 20, 2025, the highest savings account rate available today is 3.90% APY. This rate is offered by Marcus from Goldman Sachs and does not require a minimum opening deposit.
Read more: Everything you need to know about the Marcus by Goldman Sachs savings account
As you can see, the majority comes from prime savings rates online banks. These institutions have much lower overhead costs than traditional banks, so they can pass those savings on to customers in the form of higher rates and lower fees.
Here's a look at some of the best savings rates available today from our trusted partners:
Related: 10 best high yield savings accounts today >>
A high yield savings account can be a good fit if you're looking for a safe place to store your money and earn a competitive interest rate while maintaining liquidity. Traditional savings accounts and certificates of deposit (CDs) have some of the highest interest rates we've seen in more than a decade, thanks to the recent interest rate hikes by the Federal Reserve. However, the national average for these rates is fairly low compared to the highest offers available.
For example, the average savings account rate is just 0.42%, while 1-year CDs pay 1.83%, on average, according to the FDIC. The Fed is also expected to lower its target rate again in 2025, meaning now may be the last chance for savers to take advantage of today's high rates.
Taking the time to compare accounts and rates from various financial institutions will help you secure the best deal available. However, interest rates are not the only factor to consider when choosing a savings account.
For example, some banks may require you to maintain a minimum balance to earn the highest advertised rate and avoid monthly fees. Other factors to evaluate include customer service options and hours, ATM and branch access, digital banking tools, and the overall financial stability of the institution. In addition, before opening a savings account, make sure it is insured by the Federal Deposit Insurance Corporation (FDIC)—or the National Credit Union Administration (NCUA) if it is held by a credit union — so your money is protected in case the institution fails.
Read more: How to open a savings account: A step-by-step guide